Labour to increase taxation by $5 billion a year

On Q+A, David Cunliffe said:

By the way, a capital gains tax which at full running is going to bring in 5 billion dollars a year, close to, 4 to 5 billion is the single biggest change to New Zealand tax policy in decades and it’s one that I’ve personally championed for years.

That’s appalling. That’s an extra $5 billion a year ripped out of NZ families and businesses, to be spent by Government.

There is a case for a capital gains tax. I support a broad base tax system. However I’m sick of new taxes being added on, with no compensating reduction in income and company taxes.

If Labour’s capital gains tax was really about changing investment incentives, then they’d commit to reducing income and company tax by the same amount of revenue their CGT would bring in.

But in reality, their CGT is just about increase the tax burden on New Zealanders by $5 billion a year.